Pick and roll: How to adapt your supply chain game
The past year has certainly given us a dizzying array of challenges. It’s more important than ever to stay nimble and take your supply chain game to a whole new level.
Brian Gibson is the Wilson Family professor at Auburn University’s Raymond J. Harbert College of Business. He is also executive director of the Center for Supply Chain Innovation.
As I reflect on the last 12 months, one word keeps coming to mind—pivot. While I never mastered the pivot move during my unspectacular high school basketball career, I certainly have learned to pivot quickly in nearly every aspect of life over the last 12 months.
Every supply chain professional, educator, student, and association leader has had a similar experience. Life as we knew it changed dramatically as the first cancellations of NBA games and the NCAA tournament were announced in March 2020.
From an industry standpoint, nearly every supply chain responded with the explosiveness of a Michael Jordan spin move. Companies rapidly established remote work capabilities and modified safety protocols to protect essential workers in distributioncenters and on the roads. Retailers ramped up e-commerce fulfillment to handle the tidal wave of online orders. Manufacturers modified sourcing locations and transportation lanes to keep production lines running. These quick shifts are but a few of the critical moves made by supply chain professionals to sustain their organizations during the COVID-19 pandemic.
In the academic world, universities pivoted to online learning, often with less than a week’s notice. Supply chain educators became masters of Zoom and Microsoft Teams, modifying content and working tirelessly to preserve a sense of normalcy for students. Career fairs and interviews transitioned to online platforms, and requirements were adjusted to support remote internships. Supply chain research about pandemic responses has been produced with a great sense of urgency. Collectively, these pivots reveal that the “ivory tower” is more agile and adaptable than anyone thought possible.
The Council of Supply Chain Management Professionals (CSCMP) also demonstrated hall-of-fame caliber moves in 2020. As a CSCMP board of directors officer, I had a courtside seat for the amazing pivots made by the organization’s staff, board, volunteer base, and members. The CSCMP leadership team made complex decisions to keep the organization vibrant. Board meetings became two-day online events but suffered no loss of energy or passion. Roundtables creatively shifted online to provide timely webinars, virtual tours, and (much needed) remote happy hours to connect, develop, and educate CSCMP members.
The ultimate CSCMP pivot was moving the EDGE 2020 Conference and the Academic Research Symposium from onsite to virtual delivery. A year’s worth of planning and execution was compressed into just a few months. Hotel contracts were renegotiated, an online meeting platform was chosen, and nearly 300 speakers prerecorded their content in mid-August. The results? A host of sponsors, virtual exhibitors, speakers, and volunteers created the premier supply chain management virtual event for 2020. Timely content was delivered in 120 sessions across four and half days to more than 2,800 EDGE registrants.
If all this pivoting made you dizzy or exhausted, I absolutely get it. However, we must stay nimble in 2021 and develop new moves. Have a succession plan in place to seamlessly transition when key personnel retire or pursue free agency. Modify strategies to make your organization less reliant on supply chain hot spots. Collaborate with your supply chain partners to achieve greater process resilience in preparation for the next big disruption.
Importantly, make time for professional development and networking. Renew your CSCMP membership, participate in roundtable events, read the great content in Supply Chain Quarterly, and mark your calendar for September 19–22, 2021, in Atlanta, Georgia. CSCMP is pivoting toward hybrid delivery for EDGE 2021 to facilitate both in-person and virtual participation. In-person attendees can be fully confident in their well-being, thanks to the safety protocols that CSCMP is enacting for the conference.
So, break away from that home office computer screen for a “road game” at EDGE 2021 in Atlanta. I look forward to seeing you there!
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.
Inclusive procurement practices can fuel economic growth and create jobs worldwide through increased partnerships with small and diverse suppliers, according to a study from the Illinois firm Supplier.io.
The firm’s “2024 Supplier Diversity Economic Impact Report” found that $168 billion spent directly with those suppliers generated a total economic impact of $303 billion. That analysis can help supplier diversity managers and chief procurement officers implement programs that grow diversity spend, improve supply chain competitiveness, and increase brand value, the firm said.
The companies featured in Supplier.io’s report collectively supported more than 710,000 direct jobs and contributed $60 billion in direct wages through their investments in small and diverse suppliers. According to the analysis, those purchases created a ripple effect, supporting over 1.4 million jobs and driving $105 billion in total income when factoring in direct, indirect, and induced economic impacts.
“At Supplier.io, we believe that empowering businesses with advanced supplier intelligence not only enhances their operational resilience but also significantly mitigates risks,” Aylin Basom, CEO of Supplier.io, said in a release. “Our platform provides critical insights that drive efficiency and innovation, enabling companies to find and invest in small and diverse suppliers. This approach helps build stronger, more reliable supply chains.”
Logistics industry growth slowed in December due to a seasonal wind-down of inventory and following one of the busiest holiday shopping seasons on record, according to the latest Logistics Managers’ Index (LMI) report, released this week.
The monthly LMI was 57.3 in December, down more than a percentage point from November’s reading of 58.4. Despite the slowdown, economic activity across the industry continued to expand, as an LMI reading above 50 indicates growth and a reading below 50 indicates contraction.
The LMI researchers said the monthly conditions were largely due to seasonal drawdowns in inventory levels—and the associated costs of holding them—at the retail level. The LMI’s Inventory Levels index registered 50, falling from 56.1 in November. That reduction also affected warehousing capacity, which slowed but remained in expansion mode: The LMI’s warehousing capacity index fell 7 points to a reading of 61.6.
December’s results reflect a continued trend toward more typical industry growth patterns following recent years of volatility—and they point to a successful peak holiday season as well.
“Retailers were clearly correct in their bet to stock [up] on goods ahead of the holiday season,” the LMI researchers wrote in their monthly report. “Holiday sales from November until Christmas Eve were up 3.8% year-over-year according to Mastercard. This was largely driven by a 6.7% increase in e-commerce sales, although in-person spending was up 2.9% as well.”
And those results came during a compressed peak shopping cycle.
“The increase in spending came despite the shorter holiday season due to the late Thanksgiving,” the researchers also wrote, citing National Retail Federation (NRF) estimates that U.S. shoppers spent just short of a trillion dollars in November and December, making it the busiest holiday season of all time.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
As U.S. small and medium-sized enterprises (SMEs) face an uncertain business landscape in 2025, a substantial majority (67%) expect positive growth in the new year compared to 2024, according to a survey from DHL.
However, the survey also showed that businesses could face a rocky road to reach that goal, as they navigate a complex environment of regulatory/policy shifts and global market volatility. Both those issues were cited as top challenges by 36% of respondents, followed by staffing/talent retention (11%) and digital threats and cyber attacks (2%).
Against that backdrop, SMEs said that the biggest opportunity for growth in 2025 lies in expanding into new markets (40%), followed by economic improvements (31%) and implementing new technologies (14%).
As the U.S. prepares for a broad shift in political leadership in Washington after a contentious election, the SMEs in DHL’s survey were likely split evenly on their opinion about the impact of regulatory and policy changes. A plurality of 40% were on the fence (uncertain, still evaluating), followed by 24% who believe regulatory changes could negatively impact growth, 20% who see these changes as having a positive impact, and 16% predicting no impact on growth at all.
That uncertainty also triggered a split when respondents were asked how they planned to adjust their strategy in 2025 in response to changes in the policy or regulatory landscape. The largest portion (38%) of SMEs said they remained uncertain or still evaluating, followed by 30% who will make minor adjustments, 19% will maintain their current approach, and 13% who were willing to significantly adjust their approach.
Specifically, the two sides remain at odds over provisions related to the deployment of semi-automated technologies like rail-mounted gantry cranes, according to an analysis by the Kansas-based 3PL Noatum Logistics. The ILA has strongly opposed further automation, arguing it threatens dockworker protections, while the USMX contends that automation enhances productivity and can create long-term opportunities for labor.
In fact, U.S. importers are already taking action to prevent the impact of such a strike, “pulling forward” their container shipments by rushing imports to earlier dates on the calendar, according to analysis by supply chain visibility provider Project44. That strategy can help companies to build enough safety stock to dampen the damage of events like the strike and like the steep tariffs being threatened by the incoming Trump administration.
Likewise, some ocean carriers have already instituted January surcharges in pre-emption of possible labor action, which could support inbound ocean rates if a strike occurs, according to freight market analysts with TD Cowen. In the meantime, the outcome of the new negotiations are seen with “significant uncertainty,” due to the contentious history of the discussion and to the timing of the talks that overlap with a transition between two White House regimes, analysts said.